Strategy's Saylor Hints at Major Bitcoin Purchase Amid $5.9 Billion Loss

Michael Saylor, the co-founder and Executive Chairman of Strategy, has suggested another significant Bitcoin purchase. This comes despite the company facing investor lawsuits over a $5.9 billion unrealized loss in the first quarter of 2025. Saylor posted a chart on X with the caption "Nothing Stops This Orange," which many interpreted as a signal of an impending major Bitcoin acquisition. This is not the first time Saylor has used social media to hint at such purchases, and investors are closely watching for any developments.

Strategy currently holds 592,100 BTC, valued at approximately $59.7 billion, with Bitcoin trading just under $101,000 at the time of Saylor’s post. The company remains the largest corporate holder of Bitcoin. However, the timing of Saylor’s teaser is notable given the recent legal challenges faced by Strategy and its executives. A shareholder lawsuit was filed in a federal court, alleging that Strategy’s leadership, including Saylor, CEO Phong Le, CFO Andrew Kang, and several board members, breached fiduciary duties and misled shareholders.

The lawsuit centers around a recent accounting policy change adopted by Strategy in January. The company implemented a new Financial Accounting Standards Board (FASB) rule that allows crypto to be reported at fair market value on corporate balance sheets. While this change was intended to enhance financial transparency, it resulted in a significant write-down of Bitcoin holdings for the first quarter. When the results were disclosed in April, Strategy reported a $5.9 billion unrealized loss, leading to a nearly 9% drop in its stock price.

The lawsuit claims that Strategy’s leadership failed to fully disclose the implications of this accounting change and downplayed the volatility of Bitcoin. The complaint alleges that the company’s profitability, when applying its Bitcoin-driven investment strategy and treasury options, was substantially less than represented. Additionally, the lawsuit accuses Strategy’s executives of profiting from insider stock sales prior to the public release of the Q1 results, earning $31.5 million through these transactions while share prices were allegedly artificially inflated.

This is not the first legal challenge Strategy has faced over its Bitcoin strategy. A separate class-action lawsuit filed in May made similar accusations. In response, Strategy has stated its intention to vigorously defend against these claims. Despite the legal hurdles, Strategy’s stock has shown resilience, climbing nearly 28% year-to-date after rebounding from an April low. This rebound suggests that many investors remain confident in Saylor’s long-term vision for the company.